Rental Agreement Forms Tenant Screening: Fill & Download for Free

What back office services do Property Management companies provide?Firstly, they can take away the daily hassle, by providing the following services:Services, such as: providing new towels, blankets, cleaning, etc including inspections coming/leaving tenantsFix and perform small maintenance requests (facilitation all service technicians for repairs and maintenance)They perform exterior property inspections (for example monthly basis)They perform interior property inspections (for example daily/weekly basis when short stay, or monthly basis for long stay)Calculation and Determination of the rental rate and estimate the rental accurate occupancy rateOwner guidance for real estate purchases and sales or finding tenantsOwner guidance related to market conditions and local by-laws and property standardsMaintaining and Optimizing the interior appealProviding accounting servicesPreparation of legal works forms for OwnerCollection of the rent fee, and also not-received payments on behalf of Owner, such as: post-dated chequesCreating advertising in order to market the property in an advertising mediumUsing your own Property Management Agreement template guarantees you will decrease the chance for issues in the future.Source: Property Management Agreement

Most standard rental contracts include:1. Rental property address and details. This is especially important when you have one building with multiple units so there’s no confusion.2. Details on any furnishings, parking space, storage areas, or other extras that come with the rental property. Will the unit be furnished or unfurnished? Will a refrigerator be included? Etc. You can see how disagreements here could lead to problems.3. Names of all tenants. Every adult who lives in the rental unit, including both members of a married or unmarried couple, should be named as tenants and sign the lease or rental agreement. This makes each tenant legally responsible for all terms, including the full amount of the rent and the proper use of the property.4. Limits on occupancy. Your agreement should clearly specify that the rental unit is the residence of only the tenants who have signed the lease and their minor children. This guarantees your right to determine who lives in your property -- ideally, people whom you have screened and approved -- and to limit the number of occupants. The value of this clause is that it gives you grounds to evict a tenant who moves in a friend or relative, or sublets the unit, without your permission.5. Term of the tenancy. Every rental document should state whether it is a rental agreement or a fixed-term lease. Rental agreements usually run from month-to-month and self-renew unless terminated by the landlord or tenant. Leases, on the other hand, typically last a year. Your choice will depend on how long you want the tenant to stay and how much flexibility you want in your arrangement.6. Deposits and fees. Expect to see details on the dollar amount of a security deposit, cleaning deposit, or last month’s rent BEFORE the tenant can move in. Are deposits refundable or nonrefundable?7. Rent. Your lease or rental agreement should specify the amount of rent, when it is due (typically, the first of the month), and how it's to be paid, such as by mail to your office. To avoid confusion and head off disputes with tenants, spell out details such as:acceptable payment methods (such as personal check only)whether late fees will be due if rent is not paid on time, the amount of the fee, and whether there's any grace period, andany charges if a rent check bounces.8. Repairs and maintenance. Your best defense against rent-withholding hassles and other problems (especially over security deposits) is to clearly set out your and the tenant's responsibilities for repair and maintenance in your lease or rental agreement.9. Entry to rental property. To avoid tenant claims of illegal entry or violation of privacy rights, your lease or rental agreement should clarify your legal right of access to the property -- for example, to make repairs -- and state how much advance notice you will provide the tenant before entering.10. Restrictions on tenant illegal activity. To avoid trouble among your tenants, prevent property damage, and limit your exposure to lawsuits from residents and neighbors, you should include an explicit lease or rental agreement clause prohibiting disruptive behavior, such as excessive noise, and illegal activity, such as drug dealing. Is cannibus on the premises allowed or prohibited? In some state it’s legal but for federal purposes it is currently illegal.11. Pets. If you do not allow pets, be sure your lease or rental agreement is clear on the subject. If you do allow pets, you should identify any special restrictions, such as a limit on the size, type, or number of pets or a requirement that the tenant will keep the yard free of all animal waste.12. Utilities. The landlord should state who pays for what utilities. Normally, landlords pay for garbage and sometimes for water, if there is a yard. Tenants usually pay for other services, such as Internet, gas, and electricity.13. Extended absences. Some leases and rental agreements require a tenant to notify the landlord in advance if you will be away from the premises for a certain number of consecutive days (often seven or more). Such clauses may give the landlord the right to enter the rental unit during your absence to main­tain the property as necessary and to inspect for damage and needed repairs. You’ll most often see this type of clause if you live in a cold-weather place where, in case of extremely cold temperatures, landlords want to drain the pipes to guard against breakage.14. Limits on tenant behavior. Most form leases and rental agreements contain a clause forbidding tenants from using the premises or adjacent areas, such as the sidewalk in front of the building, in such a way as to violate any law or ordinance, including laws prohibiting the use, possession, or sale of illegal drugs. These clauses also prohibit tenants from intentionally damaging the property or creating a nuisance by annoying or disturbing other tenants or nearby residents—for example, by continuously making loud noise. Leases and rental agreements may prohibit smoking, in individual units as well as in common areas.15. Restrictions on use of the property. Landlords may throw in all kinds of language limiting tenant use of the rental property and who may stay there. These may be minor (for example, no waterbeds, plants on wood floors, or bikes in the hallway) or quite annoying. These may be in a separate set of rules and regulations or individual clauses. Basically, landlords can set any kind of restriction they want—as long as it’s not discriminatory or retaliatory or otherwise violates your state law.16. No home businesses. Landlords may prohibit tenants from running a business from your home, by including a clause specifying that the premises are “for residential purposes only.” The concern here is generally about increased traffic and liability exposure if one of your customers or business associates is hurt on the premises. Obviously, working at home on your computer is not likely to bother your landlord, and may not even be noticed.
 If you want to run a day care operation in your rented home, your landlord may not be able to flatly prohibit it. Laws in some states, including California and New York, are designed to encourage family-run day care. Landlords in these states may limit the number of children, however, and any business you run must comply with state fire and health regulations regarding minimum size of the facility and fire exits.17. No assignments or sublets without landlord permission. Most careful landlords will not let tenants turn their rental over to another tenant (called “assignment”), let someone live there for a limited time while you’re away (called a “sublet”), or let you rent an extra bedroom to another occupant, with you as the “landlord” (also called a sublet), without their written consent. 
Lease clauses often specifically prohibit tenants from renting rooms on Airbnb or similar short-term rental services.18. Attorney fees and court costs in a lawsuit. Many leases and rental agreements specify who will pay the costs of a lawsuit if you go to court over the meaning or implementation of a part of your rental agreement or lease—for example, a dispute about rent or security deposits. These clauses do not apply to legal disputes that arise independently of the lease or rental agreement—for example, lawsuits over alleged discrimination. A common and evenhanded attorney fees clause will explicitly require the losing side in a landlord-tenant dispute concerning the lease or rental agreement—whether it’s the landlord or the tenant—to pay attorney fees and court costs (filing fees, service of process charges, deposition costs, and so on) of the winning party. Watch out for clauses that make only the losing tenant pay for the owner’s lawyer’s fees. In several states, these unfair arrangements will be interpreted to run both ways, even though the landlord didn’t intend it that way (in other words, if you win, the landlord has to pay your costs).19. Grounds for termination of tenancy. You’ll often see a general clause stating that any violation of the lease or rental agreement by you, or by your guests, is grounds for terminating the tenancy according to the procedures established by state or local laws. Rules for terminating a tenancy differ depending on whether or not you sign a lease or rental agreement, and vary by state (and, in some cases, by city, if the property is under some form of rent control).20. Other Restrictions. Be sure your lease or rental agreement complies with all relevant laws including rent control ordinances, health and safety codes, occupancy rules, and antidiscrimination laws. State laws are especially key, setting security deposit limits, notice requirements for entering rental property, tenants' rights to sublet or bring in additional roommates, rules for changing or ending a tenancy, and specific disclosure requirements such as past flooding in the rental unit.These are just a few of the most common clauses usually found in lease agreements. Work with a local property manager in your state to develop a lease that is appropriate to your property and tenants. They are worth their weight in gold when it comes to finding reliable tenants, screening and leasing. And their fee should be tax-deductible to an active property owner while your personal time spent in these activities is not.

Should real estate investors manage their investment property themselves or use the services of a professional property management? To answer this, let’s take a look at the pros and cons of a property management company:Pros of Property Management Companies1. Experience in the Real Estate MarketCompared to the average property investor, property management companies have supreme experience in the real estate market. Moreover, they are up-to-date on state and federal rules and regulations regarding landlord-tenant rights and responsibilities. Investors and landlords that are new to the real estate market would most likely benefit and learn from the experience provided by property management companies the most.When it comes to your investment property, making mistakes can be costly. A property management company will keep you in check regarding all the legalities and framework of the real estate market, meaning you’ll be less bound to make silly mistakes or unknowingly violate any laws and regulations.2. Take Care of Tenancy and EvictionOne of the best advantage of hiring a property management company is that they rid real estate investors of one of the toughest tasks, like finding appropriate tenants. This requires a thorough tenant screening process, which can be a pain for the average property investor.Property management companies deal with this issue without any difficulties. A property management company will create application forms, interview applicants, and choose the best tenant. This includes studying a tenant’s financials, recommendations, and legal situation.In addition, a professional property management will deal with any issues tenants may have after they move into the rental property. They receive their calls, listen to their suggestions and complaints, ensure that tenants stick to the rules of the lease agreement, and handle emergency repairs and maintenance issues to make sure tenants are happy and satisfied.Not only that, but professional property management also handles the undesirable tasks of evicting tenants from the rental property, in addition to the tenant turnover process. They receive the keys, inspect and clean the property, and handle the process of marketing it and finding new tenants again. Basically, they take away some responsibilities that real estate investors dread.3. Improved Services and Response TimeSome real estate investors don’t have a flexible schedule for attending to tenants and the investment property’s needs. Thus, another pro of hiring a property management company is that they handle all maintenance and repair tasks related to the investment property. This includes regular check-ups, maintenance, cleaning, and repairing of any damages.Moreover, professional property management companies typically have a solid network of plumbers, carpenters, electricians, and all other handymen. This means they provide prompt services in case of any required repairs, which keeps the investment property in a good shape. After all, any damage will add up to your rental expenses, and eventually will affect your rental income and overall rate of return on investment. On the other hand, a professional property management will most likely notice and fix damages in short order.4. Financial HelpThis advantage includes a number of aspects. First, thanks to their experience in the real estate market, property management companies have a good idea on how to set the right rent for the investment property that will generate a positive cash flow and maintain a good occupancy rate. Moreover, it will take care of collecting rent and ensure tenants are paying on time.Not only have that, but property management companies also help in setting a budget in order to ensure you stay on track of your expenses. They also keep records of all the financial aspects related to the rental property and ensure you’ll have access to these records when needed.Cons of Professional Property Management1. They’re Not CheapThe main reason many enter the real estate investing business is to make money through rental income. When hiring a property management company, you have to pay a significant percentage of rental income (typically 4% - 12%) for their services. This will definitely affect your profit margin as you’ll lose some of your revenues. Real estate investors who depend on their rental income to pay off their mortgages have to take this into consideration before hiring a property management company.Aside from the monthly fees that property management companies require, a property investor will also pay for additional different expenses when needed such as costs advertising and finding and screening tenants. This ultimately affects your cash on cash return; the higher your rental expenses are, the lower your cash on cash return becomes!Note: Mashvisor’s investment property calculator helps you calculate cash on cash return (in addition to other metrics like the cap rate and cash flow) to ensure you’re getting the best return on investment when determining whether or not a property management company is really needed.2. Less Control = Less KnowledgeAs mentioned earlier, one of the reasons why a property investor would consider hiring a property management company is not having to deal with issues like tenant screening, handling repairs and maintenance, collecting rent, tenant turnover and eviction process, etc. However, going through these processes yourself and interacting with tenants allows you to gain the needed knowledge on real estate investing.Therefore, giving a professional property management company the full control over a rental property will create a challenge of building relationships with tenants and leave the property investor feeling lost in the real estate market – simply because you can’t understand something that you have no experience with.Professional Property Management: Yes or No?The answer really depends on you and your investment. Although they’re not cheap, the list of services provided by a property management company make the amount paid irrelevant for some real estate investors. So, as a property investor, you should analyze your rental income and decide whether or not hiring a professional property management is worth the money.Head over to Mashvisor for the latest news and guides related to real estate investing to help make the best real estate investment decision!